Movie Gallery, the country’s second largest video rental chain, is shutting down all of its stores, including those under the Hollywood Video brand.
The chain filed Chapter 11 in the U.S. bankruptcy court in Richmond in February. At the time the chain said it would close hundreds of stores, including several in Richmond. But now the rest of its 2,500 stores will soon begin liquidating.
A Wall Street Journal report explains why:
Consumers are now viewing movies streamed online or through on-demand cable services. Netflix Inc. has cut into revenues of Movie Gallery and Blockbuster through its mail-order service and online offerings. In addition, movie-watchers have turned to alternatives such as Redbox, a unit of Coinstar Inc. that operates movie-vending machines in grocery stores, among other places.
Movie Gallery’s financial woes trace back to debt it took on acquiring Hollywood Entertainment Corp. in 2005. It filed for bankruptcy in February under the weight of roughly $600 million in debt.
Some of Movie Gallery’s stores slated for closure could be snatched up by strategic operators, said one of the people familiar with the matter. Those discussions remain in early stages, this person said.
BizSense covered the local spread of Redbox in December.
As for Movie Gallery, very few stores remain in the Richmond area, as the chain has closed most of them since February.
Below is a list of the remaining area stores, from the chain’s website:
Hollywood Video
3707 Mechanicsville Tpke.
Richmond, Va 23223
Movie Gallery
51 S Airport Drive
Highland Springs, VA 23075
Movie Gallery
2900 Cedar Lane
Colonial Heights, VA 23834
Movie Gallery
2595 New Kent Highway
Quinton, VA 23141
Movie Gallery
5298 Oaklawn Blvd
Hopewell, VA 23860
Movie Gallery
4915-F Rich Tapp Highway
Aylett, VA 23009
Movie Gallery
2105 Academy Road
Powhatan, VA 23139
Movie Gallery
2736 Fairground Road
Goochland, VA 23063
Movie Gallery, the country’s second largest video rental chain, is shutting down all of its stores, including those under the Hollywood Video brand.
The chain filed Chapter 11 in the U.S. bankruptcy court in Richmond in February. At the time the chain said it would close hundreds of stores, including several in Richmond. But now the rest of its 2,500 stores will soon begin liquidating.
A Wall Street Journal report explains why:
Consumers are now viewing movies streamed online or through on-demand cable services. Netflix Inc. has cut into revenues of Movie Gallery and Blockbuster through its mail-order service and online offerings. In addition, movie-watchers have turned to alternatives such as Redbox, a unit of Coinstar Inc. that operates movie-vending machines in grocery stores, among other places.
Movie Gallery’s financial woes trace back to debt it took on acquiring Hollywood Entertainment Corp. in 2005. It filed for bankruptcy in February under the weight of roughly $600 million in debt.
Some of Movie Gallery’s stores slated for closure could be snatched up by strategic operators, said one of the people familiar with the matter. Those discussions remain in early stages, this person said.
BizSense covered the local spread of Redbox in December.
As for Movie Gallery, very few stores remain in the Richmond area, as the chain has closed most of them since February.
Below is a list of the remaining area stores, from the chain’s website:
Hollywood Video
3707 Mechanicsville Tpke.
Richmond, Va 23223
Movie Gallery
51 S Airport Drive
Highland Springs, VA 23075
Movie Gallery
2900 Cedar Lane
Colonial Heights, VA 23834
Movie Gallery
2595 New Kent Highway
Quinton, VA 23141
Movie Gallery
5298 Oaklawn Blvd
Hopewell, VA 23860
Movie Gallery
4915-F Rich Tapp Highway
Aylett, VA 23009
Movie Gallery
2105 Academy Road
Powhatan, VA 23139
Movie Gallery
2736 Fairground Road
Goochland, VA 23063